Correlation Between Travelers Companies and Vanguard FTSE
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Vanguard FTSE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Travelers Companies and Vanguard FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Travelers Companies and Vanguard FTSE Europe, you can compare the effects of market volatilities on Travelers Companies and Vanguard FTSE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Travelers Companies with a short position of Vanguard FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Vanguard FTSE.
Diversification Opportunities for Travelers Companies and Vanguard FTSE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and Vanguard is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Vanguard FTSE Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard FTSE Europe and Travelers Companies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Travelers Companies are associated (or correlated) with Vanguard FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard FTSE Europe has no effect on the direction of Travelers Companies i.e., Travelers Companies and Vanguard FTSE go up and down completely randomly.
Pair Corralation between Travelers Companies and Vanguard FTSE
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.44 times more return on investment than Vanguard FTSE. However, Travelers Companies is 1.44 times more volatile than Vanguard FTSE Europe. It trades about 0.13 of its potential returns per unit of risk. Vanguard FTSE Europe is currently generating about -0.28 per unit of risk. If you would invest 25,237 in The Travelers Companies on August 28, 2024 and sell it today you would earn a total of 885.00 from holding The Travelers Companies or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Vanguard FTSE Europe
Performance |
| Timeline |
| The Travelers Companies |
| Vanguard FTSE Europe |
Travelers Companies and Vanguard FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Vanguard FTSE
The main advantage of trading using opposite Travelers Companies and Vanguard FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Vanguard FTSE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vanguard FTSE will offset losses from the drop in Vanguard FTSE's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| Vanguard FTSE vs. Vanguard FTSE Pacific | Vanguard FTSE vs. Vanguard FTSE Emerging | Vanguard FTSE vs. Vanguard FTSE All World | Vanguard FTSE vs. Vanguard FTSE Developed |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |